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Record 1M Infrastructure Investment Transforms California Water Service Operations

Record $471M Infrastructure Investment Transforms California Water Service Operations

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California Water Service Group (NYSE: CWT) has invested a record $471 million in capital improvements across its service areas in 2024, marking a 23% increase from 2023’s investment. The company’s Main Replacement Program represented $156 million of the total investment, installing nearly 36 miles of new pipe.

Key infrastructure improvements included:

  • 124 storage and pressure tank upgrades
  • 110 water treatment facility improvements
  • 27 SCADA system upgrades
  • 26 generator and motor control center installations

These investments aim to enhance water safety, reliability, and system resilience while maintaining affordable service at approximately one penny per gallon across service areas.

California Water Service Group (NYSE: CWT) ha investito un record di 471 milioni di dollari in miglioramenti capitali nelle sue aree di servizio nel 2024, segnando un aumento del 23% rispetto all’investimento del 2023. Il Programma di Sostituzione delle Condotte dell’azienda ha rappresentato 156 milioni di dollari dell’investimento totale, installando quasi 36 miglia di nuove tubature.

I principali miglioramenti infrastrutturali hanno incluso:

  • 124 aggiornamenti di serbatoi di stoccaggio e pressione
  • 110 miglioramenti agli impianti di trattamento dell’acqua
  • 27 aggiornamenti dei sistemi SCADA
  • 26 installazioni di generatori e centri di controllo motore

Questi investimenti mirano a migliorare la sicurezza dell’acqua, l’affidabilità e la resilienza del sistema, mantenendo un servizio accessibile a circa un centesimo per gallone nelle aree di servizio.

California Water Service Group (NYSE: CWT) ha invertido un récord de 471 millones de dólares en mejoras de capital en sus áreas de servicio en 2024, marcando un aumento del 23% respecto a la inversión de 2023. El Programa de Reemplazo de Tuberías de la compañía representó 156 millones de dólares de la inversión total, instalando casi 36 millas de nuevas tuberías.

Las principales mejoras en infraestructura incluyeron:

  • 124 actualizaciones de tanques de almacenamiento y presión
  • 110 mejoras en instalaciones de tratamiento de agua
  • 27 actualizaciones del sistema SCADA
  • 26 instalaciones de generadores y centros de control de motores

Estas inversiones tienen como objetivo mejorar la seguridad del agua, la fiabilidad y la resiliencia del sistema, manteniendo un servicio asequible a aproximadamente un centavo por galón en las áreas de servicio.

캘리포니아 수도 서비스 그룹 (NYSE: CWT)는 2024년 서비스 지역에서 자본 개선에 4억 7천 1백만 달러를 기록적으로 투자했으며, 이는 2023년 투자액보다 23% 증가한 것입니다. 회사의 주요 교체 프로그램은 총 투자액의 1억 5천 6백만 달러를 차지하며, 거의 36마일의 새로운 파이프를 설치했습니다.

주요 인프라 개선 사항은 다음과 같습니다:

  • 124개의 저장 및 압력 탱크 업그레이드
  • 110개의 수처리 시설 개선
  • 27개의 SCADA 시스템 업그레이드
  • 26개의 발전기 및 모터 제어 센터 설치

이러한 투자는 물의 안전성, 신뢰성 및 시스템 회복력을 향상시키는 것을 목표로 하며, 서비스 지역에서 갤런당 약 1센트의 저렴한 서비스를 유지합니다.

California Water Service Group (NYSE: CWT) a investi un montant record de 471 millions de dollars dans des améliorations d’infrastructure dans ses zones de service en 2024, marquant une augmentation de 23% par rapport à l’investissement de 2023. Le Programme de Remplacement des Canalisations de l’entreprise représentait 156 millions de dollars de l’investissement total, avec l’installation de près de 36 miles de nouvelles canalisations.

Les principales améliorations d’infrastructure comprenaient :

  • 124 mises à niveau de réservoirs de stockage et de pression
  • 110 améliorations des installations de traitement de l’eau
  • 27 mises à niveau des systèmes SCADA
  • 26 installations de générateurs et de centres de contrôle des moteurs

Ces investissements visent à améliorer la sécurité, la fiabilité et la résilience du système d’eau tout en maintenant un service abordable d’environ un cent par gallon dans les zones de service.

California Water Service Group (NYSE: CWT) hat im Jahr 2024 einen Rekordbetrag von 471 Millionen Dollar in Kapitalverbesserungen in seinen Servicegebieten investiert, was einem 23%igen Anstieg gegenüber der Investition von 2023 entspricht. Das Hauptleitungsersatzprogramm des Unternehmens machte 156 Millionen Dollar der Gesamtinvestition aus und installierte fast 36 Meilen neuer Rohre.

Wichtige Infrastrukturverbesserungen umfassten:

  • 124 Aufrüstungen von Speicher- und Drucktanks
  • 110 Verbesserungen von Wasseraufbereitungsanlagen
  • 27 Upgrades von SCADA-Systemen
  • 26 Installationen von Generatoren und Motorsteuerzentren

Diese Investitionen zielen darauf ab, die Sicherheit, Zuverlässigkeit und Resilienz des Wassersystems zu verbessern und gleichzeitig einen erschwinglichen Service von etwa einem Cent pro Gallone in den Servicegebieten aufrechtzuerhalten.

Positive

  • Record $471M capital investment, up 23% YoY
  • Major infrastructure upgrade: 36 miles of new pipe installed
  • Significant system improvements: 124 storage tanks, 110 treatment facilities
  • Enhanced operational efficiency through 27 SCADA upgrades
  • Maintained affordable pricing at ~1 penny per gallon

Negative

  • Substantial capital expenditure may impact short-term financial metrics
  • Higher investment needs could pressure future rate requirements

Insights

California Water Service Group’s $471 million infrastructure investment represents a 23% year-over-year increase in capital deployment, significantly expanding the company’s rate base. In the regulated utility model, this capital-intensive strategy directly translates to future earnings growth as these investments become part of the rate base upon which the company earns its authorized return.

The substantial investment in pipe replacement ($156 million) addresses aging infrastructure challenges while the focus on wildfire hardening and system resiliency represents prudent risk management in California’s climate-vulnerable regions. These investments typically receive favorable regulatory treatment during rate cases because they enhance system reliability and safety.

While these capital expenditures will impact near-term cash flows, they establish a foundation for long-term revenue stability through the regulatory compact that allows utilities to recover these costs plus a reasonable return. The company’s emphasis on cost efficiency (maintaining “about a penny per gallon” rate) suggests management is balancing infrastructure needs with affordability concerns – a important factor for maintaining constructive regulatory relationships.

For investors, this accelerated capital program signals management’s confidence in their ability to effectively deploy capital while navigating the regulatory approval process. The diversity of projects (pipe replacement, treatment facilities, SCADA systems) demonstrates a comprehensive approach to system modernization rather than a narrow focus on a single infrastructure challenge.

The scale and diversity of CWT’s infrastructure program reveal a sophisticated asset management strategy. The 189,135 feet of pipe replacement addresses the most critical and capital-intensive aspect of water system maintenance, directly targeting reliability and water loss prevention. This proactive replacement approach typically yields significant operational benefits by reducing emergency repairs and non-revenue water losses.

The 124 storage and pressure tank improvements augment system resilience by ensuring adequate water reserves during demand fluctuations and emergency scenarios. Similarly, the 110 treatment facility upgrades demonstrate a commitment to staying ahead of water quality standards rather than merely complying with current regulations.

Most noteworthy is the investment in 27 SCADA system upgrades, which represents the technological modernization essential for operational efficiency. These digital monitoring systems enable real-time response to system anomalies, predictive maintenance, and more efficient staffing models – all contributing to operational cost control.

The investment in 26 generators and motor control centers highlights the company’s focus on system redundancy and operational continuity during power disruptions, an increasingly critical consideration given California’s grid reliability challenges. This comprehensive approach to infrastructure renewal aligns with industry best practices of addressing both physical assets and control systems simultaneously, maximizing the efficiency of capital deployment while building system resilience against multiple threat vectors.







SAN JOSE, Calif., March 06, 2025 (GLOBE NEWSWIRE) — To enhance water safety and reliability for its customers and communities, California Water Service Group (Group) (NYSE: CWT) invested a record $471 million in capital improvements throughout its service areas in 2024. Infrastructure improvements completed last year exceeded the previous high investment recorded in 2023 by $87 million.

Group subsidiary California Water Service’s annual Main Replacement Program, the largest portion of the company’s infrastructure improvement plans, accounted for $156 million in completed projects. The company installed 189,135 feet of pipe, or nearly 36 miles, in 2024 through this program. Other notable infrastructure projects last year included:

  • 124 storage and pressure tank replacements or retrofits to augment available water supplies and regulate fluctuations in water pressure.
  • 110 water treatment facility improvements to continue meeting or surpassing all primary and secondary water quality standards.
  • 27 Supervisory Control and Data Acquisition (SCADA) system upgrades to improve monitoring and efficient operation of facilities throughout the company’s service areas.
  • 26 generator and motor control center installations or replacements to help keep systems operating properly during both routine operations and power outages or shutoffs.

“Increasing last year’s capital investments by 23% over 2023 helps with wildfire hardening and improving resiliency and sustainability, reflecting our team’s rigorous focus on providing quality, service, and value to our customers,” said Marty Kropelnicki, Group Chairman and CEO. “Consistently, proactively, and strategically upgrading water and wastewater system infrastructure not only helps us deliver safe, clean, and reliable drinking water for our customers’ everyday and emergency needs, but it also helps keep service affordable by avoiding more costly issues in the future. This commitment to affordability has enabled customers to still pay about a penny per gallon in each of our service areas.”

About California Water Service Group
California Water Service Group is the largest regulated water utility in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.1 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, Texas Water Service. 

Group’s purpose is to enhance the quality of life for customers, communities, employees, and stockholders. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s 1,200+ employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The company has been named one of “America’s Most Responsible Companies” and the “World’s Most Trustworthy Companies” by Newsweek, a Top Workplace, and a Great Place to Work®.  More information is available at www.calwatergroup.com.

Media Contact
Yvonne Kingman
ykingman@calwater.com
310-257-1434









FAQ



How much did California Water Service Group (CWT) invest in infrastructure improvements in 2024?


CWT invested a record $471 million in infrastructure improvements in 2024, representing a 23% increase from 2023.


What percentage of CWT’s 2024 infrastructure investment went to the Main Replacement Program?


The Main Replacement Program accounted for $156 million, approximately 33% of the total $471 million investment.


How many miles of pipe did CWT install through its Main Replacement Program in 2024?


CWT installed 189,135 feet of pipe, equivalent to nearly 36 miles, through its Main Replacement Program in 2024.


What are the key infrastructure improvements CWT completed in 2024?


CWT completed 124 storage tank upgrades, 110 water treatment facility improvements, 27 SCADA system upgrades, and 26 generator installations.


How much do CWT customers pay per gallon of water in their service areas?


Customers pay approximately one penny per gallon of water across CWT’s service areas.





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